American Airlines and Qantas seek US DOT approval to form joint business

American Airlines and Australian carrier Qantas have submitted an application to the US Department of Transportation (DOT) seeking approval to establish a new joint business, which will provide improved services to passengers flying between North America and Australia and New Zealand.

The planned venture is expected to improve service, increase demand and unlock more than $300m per annum in consumer benefits.

The benefits include up to $221m from expanding codesharing between American Airlines and Qantas, as well as opening more connections to additional destinations.

They also include up to $89m from various ranges of fare classes across each other’s networks, comprising reduced fares and discounts.

American Airlines said in a statement: “The joint business will also give American and Qantas the opportunity to launch additional routes between the US and Australia and New Zealand, including new flights to city pairs currently not served by either carrier.

“An expanded relationship will encourage significant improvements in the overall customer experience, including additional frequent flyer benefits and investments in lounges, baggage systems and other infrastructure designed to better serve the carriers’ joint customers.”

The benefits to be provided by the proposed business are also expected to create up to 180,000 new journeys between the US and Australia and New Zealand every year.

If DOT rejects the application, American Airlines and Qantas will have to further reduce codesharing on their networks.

American Airlines noted that this would eventually endanger the number of services and routes each carrier flies between the US and Australia and New Zealand.

Last September, the General Superintendence (SG) of the Administrative Council for Economic Defense (CADE) in Brazil had recommended the anti-trust regulator’s Administrative Tribunal to approve a joint business agreement (JBA) between the carrier and LATAM Airlines Group.